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tv   FOX Business After the Bell  FOX Business  January 3, 2013 4:00pm-5:00pm EST

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downgrading, this doesn't help it either. david: a lot of folks have said with the new repeat of what we saw the last four years with obamacare and united health care is one stock that cannot lose. it did lose today, over 4%. nicole: they made a very strong comment for managed care. well point another name. the one they like the best, but the group is coming under pressure, certainly a loser down 5%. liz: in the end looking at names like tj maxx because those companies come out $1.33 gain. some retailers, that consumer may still be out there. nicole: i have to say, we continue to watch the dollar.
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liz: the bells are clinging on wall street, and we lost some hefty gain yesterday, but not all of it. dow jones industrials vanishing up, down actually. we sliced the losses in half in the last two and a half minutes. david: when there is downward pressure from the fed, nothing pushes the market like the fed would. liz: i know those levels matter, but a lot of red on the screen. david: the fed may be finishing up the money printing before the year is out, gold took a big hit down $24, again all because of the minutes from the federal reserve suggesting there is now an even defied within members between those who are for ending qe or continuing until the year's end. liz: dow jones transport 52-week
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high. the index often looked at as a barometer for the overall market. airlines, railroads, fedex and ups. david: the yields rising for a third straight day since may. 1.91%. historically it is low, but significant jump seven basis points. the cliff deal led to most of us with higher taxes. new health care taxes plus we have the upcoming debt ceiling battle. his 2013 looking at a good year for business despite the problems for politicians? we have two ceos, one with insight on the consumer and with insight on small businesses, the ceo of famous dave's both here to talk about new taxes and how it is affecting their business.
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liz: a strong year. remember this commercial? they're hitting all-time record in 2012. they have had 24 record-setting months in a row set to the vampire commercials and very much in part because people want to buy their cars. coming up, president joining us exclusively. david: before all that, a busy hour. what drove the market with the "data download." stocks erasing earlier gains after they signal the bond buying program may end of this year. cross the unchanged line 33 times before finally deciding which wanted to do firmly into the red stepping a two-day streak of triple digit gains. all three major indices ending lower. the dollar related to all of this extending gains against euro pushing the currency to the lowest level in three weeks, the
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euro falling to an intraday low of $1.30. payroll services firm reporting the economy added 215,000 private sector jobs in the final month of the year up from revised november. professional services, trade and transportation boosted hiring in december and of course tomorrow we get the all-important jobs report for the month of december. liz: our markets panel, managing director and partner, ace investment strategist chief trader, let's start with the cme. it could not surprise a lot of the traders. >> in the last two minutes we have seen the biggest sel cell e have seen all week were in a while. a lot of selling on the close so some very interesting action and
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that was happening as i was hearing you talk about last two minutes. david: was it the yield? looking at a yield edging very close to the 2% mark. historically speaking that is low, but very significant for day to day traders. >> you have looked at and unhedged marketplace for a long time and you could be seeing some hedging coming in at these levels. that is a big number going into the end of the day. liz: can you clarify something for us? we were down about 40 points, five minutes before the close and then we were down about 20 or so points yet you see sonic celebration of selling. where were the money flows at that point? >> it looks like we're getting some hedging coming in
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potentially at these levels. we will watch the opening tomorrow, they will really start raising the flags so where were when, really what you saw in the last couple of days is the people that were already long, the institutions were the buyers. right now at the end of the day, we see little bit on the institutional side this week but nothing like we saw on the close. liz: we want to come back to you in the s&p futures close, but 1456 is the key s&p level. david: gentlemen, great to see you both. required talk about the fed in a second but first the tax changes congress finally decided on. you think of who is going to hurt the least because number likes higher taxes. who is going to hurt the least and i think of the large-cap
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companies because they're probably hurt less than most people, is that we are putting your money, to be large-cap now? >> that is one of the areas. large-cap multinationals have over 50% of their revenues coming from overseas so they will not feel the drag a lot of small companies will here in the united states. liz: let's talk about if you get a sense we will have no problems in the u.s., or your little frightened about certain pockets of equities, and if so, which ones? >> overall we are bullish for the area i'm concerne i am conce the small cap. the situation with personal income tax is going up, like they are, small-cap and mid-cap usually like. david: i'm thinking about whether we have worked all the bad news and the stock market. clearly yesterday and the trading day before that you got the indication we had and we
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were due for a run-up. look at what happened with the fed today suggesting they will not be printing any more money going into next year, 2014. maybe even midyear printing money. is that a concern, said one worry that hasn't been worked into the stock market? >> that is something a little bit new to the market. either way we're talking down the road and permanent came out and told us as long as inflation stays low to a .5% or the unemployment rate stays above 6.5% the easy interest-rate policy will be here to stay. the so-called risk trade concept is still there for now and could be changing a little down the road fo but for the time being t is still there. still a lot of catchup investing that needs to be done. liz: show us the money, where's it going to go?
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>> i think it is going to go to the lagging sector of last year. the housing market has revised little bit, something related to it is consumer durables. they had not been doing that well last year. people put off the buying, consumer durables. people are starting to get into the furniture's and supplies. i like that senator consumer durable. david: stock wise we're talking about whirlpool and companies like that? >> i like whirlpool a lot. i also like an accessory store, i think these are the leaders in that sector. speak we feel some leadership could come in the leadership world, let's try to drill down little bit would it be in a commercial area, residential,
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single-family dwellings? >speak of the areas we like our realistic, most recession if we have properties so w we like student housing, self storage and some senior living centers. all demographics are very, very strong. david: what about the jobs number? are you going to be influenced at all in your decision about investing with regard to equities based on what happens? if we have a terrible number tomorrow, will that affect you at all? >> we are long-term investors and whainwhat happens with the s report will not impact our outcome. we think the jobs report coming out tomorrow we are not expecting any huge surprises on the upside or the downside. liz: what is the number one mistake investors have the potential to make in 2013 but that you want to warn them against?
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>> based on the environment it is still not a momentum investing market so chasing the momentum, chasing a stock, the market that has already gone up to be another mistake. buying lower, sell higher. very difficult to do, but exactly the things to be done. right now i think we are still in the middle of a rally so there is a little bit more to go but throughout the history over the past 45 months, 13% or so outside ready to be sold about 7.5% downside it is ready to be bought. david: are you still 50% in cash? >> yes, we are waiting a little bit. i like the market, i think the s&p finishing up about 15 to 17% taking us to 1670. david: if that happens at the
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end of the year you would only be about 10% in cash, right? >> you are absolutely right. i want to take my profit and going lower by intuit. again, not easy to do. some clients get all freaked out by saying that. liz: thank you both. david: appreciated. liz: today is the start of the 113th congress. the first battle is already over. but there are much bigger fights around the corner. up next it is to d.c. for the very latest. david: a very strong year for car sales but the most american or foreign automakers. we will dig into the numbers and talked exclusively about their record sales.
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unbelievable increase over last year gearing up for even stronger sales down the road. liz: we continue to drive you to more profits in 2013. we have analysts ready to share his internet stock winners and also losers. how can you miss that? stay with us right here on fox business. [ indistinct shouting ] ♪ [ indistinct shouting ]
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david: s&p futures are closing. let's go back to the cme, how is it shaping up for tomorrow? >> tomorrow after a good inside day, look for the positive. a public opening, there could be some sellers. we stayed within and inside range, it has been a very interesting week to say the least. liz: three points away from this level, watch that. shares of game stop falling today. nicole petallides on the floor of the new york stock exchange. nicole: not good news for game stop. we have seen it under some pressure. they had concerns about a fresh patent from sony that could block the resale games on playstation four. can we go to gamestop? the store itself always seems to be hot but so constituent upon so many moves.
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new games, new hardware, lot of talk about the wii-u, did not do as well as some people had hop hoped, that would be another factor as to why we are seeing gamestop coming under pressure. david: thank you very much. a fiscal cliff steele was the last straw. more than 90 new members. liz: john boehner was reelected as speake speaker of the house. what issues will be front and center for the new class? peter. peter: we don't have a look at the photos to figure it out, it will be a busy few months ahead. the speaker winning reelection today, 220 votes, six votes to spare. this is why he's going to have to work through march.
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the sequestered, $100 billion in automatic spending cuts delaying for two months for the legislation this past tuesday, the debt ceiling and continuing resolution, people forget this, the cr keeping them operating through mid-march, the budget and the debt will be the biggest bikes. and the acceptance speech, warning the president too expected. >> $16 trillion rising, or national debt is draining free enterprise and weakening everything. the american dream is in peril so long as the namesake is weighed down by this anchor of debt. break its hold, we can set the economy for you.
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peter: other issues they will be wrestling with, immigration reform and possible uncontrolled measures post the new town tragedy. david: maybe he had a cold. peter: he might have gotten emotional. liz: i like that. george foreman used to cry a lot. we noticed this. the internet continues to evolve. up next we have analysts with internet winners and losers for 2013, but guess what, one of his losers was actually the hottest internet stock of 2012. find out which one it is next, and what he was on before all the big boys. david: working americans pay more taxes, so what does this mean for business in america particularly retail? the ceo of the famous dave's barbecue restaurants and ceo of first edge to tell us how
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liz: from botched ipo to come from behind winners, internet investors endured a choppy ride last year, but we have an analyst with three internet stocks he says are screaming for the new year.
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the in-stat analyst, and we have some losers you say people have to stay away from. i want to get these names because the internet sector has been very alluring too many people but facebook really through people for a loop as what happened was a botched ipo that drew attention away from what has been an unlivable a successful start of a company all the way through. you love this now, why? >> had a couple to a seer but now the two biggest push is on the behind the company so now toward modernization in 2013. liz: they will figure a way to make a lot of money because everybody is using smart phones now to check their facebook. >> mobile modernization would be a big thing for them in 2013 as well as 2014. coming from mobile over the next
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two years. liz: you think people will click on mobile ads enough facebook can say the companies i will charge you for that? >> there are multiple different ad units which i understand is developers on the promoted post. a lot of them are connected with people who use facebook. they don't even know they are interacting with and add. they are part of the contents. that only are they part of the content, but also socially relevant. you may have it in mind, clicked on with the past, it is relevant to your experience as well. liz: let me quickly touch upon in t instagram.
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will they figure out a way to monetize instagram without annoying people? >> i think it is behind them now. you will see facebook look to monetize instagram. i am seeing roughly $250 million in revenue for the first full year at 50% margins so it will be a strong catalyst in 2013. liz: let me get to your next pick, that is amazon. i'm surprised the people who pay this because the price to earnings ratio, the trailing pe, 3080. is that really sustainable? >> it is a peg ratio, broad expectations seeing 50% growth for amazon.
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liz: i am an amazon prime member, but i wonder the stock. very nicely over the past year up 44%. will it may make that? >> i see the stock depreciation, and the stock is not for everyone. it is for growth investors. that is fine. over time i think this stock will rationalize and come down to a level to buy the stock. 2013, 2014 in march and extension year for amazon led by expansion of gross margin and fulfillment expenses. i look back for amazon has come off, the stock price depreciated significantly coming off of the recent investment cycle they are on right now. liz: facebook, amazon.
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>> the company should be very familiar with. liz: he helped found fox. >> is a perfect blend of growth and value. unique combination in the space. i look at this stock is he a stock that is very undervalued. relative to growth expectations. liz: which do you think will be the real driver? >> going through secular phase led by people with a lot more comfortable posting information online led by social media and the trade down in the economy to go out and meet someone. liz: let's go through these quickly. one of them by the way with a wa
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huge performer over 2012. that is a well. why do you think these are not the winners? >> i think those two companies generate key monetization of core levels and display advertising. i think internet stocks are benefiting from ad dollars away from print media. they will be challenged they can market share away from this book. they will have a hard time taking share from google, facebook and amazon as well. liz: great to see you.
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capital markets, he is their analysts. david: creative ads like this one are helping drive sales. >> just announced 2012 was their best year ever here in america. how does the automaker plan to keep up the pace? we will find out. joining us exclusively later this hour. coming up, a fiscal cliff deal good for businesses? two ceos from two very different companies. ready to voice their concerns and whether they will invest into what the government just did or invest out of it. coming right up. tdd# 1-800-345-2550 you should've seen me today.
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better from unilever. starbucks rolling out one dollar usable plastic cups nationwide. the coffee giant will give customers a 10 cent discount when they bring the cup in for a reveal. russian president vladmir putin granted french actor gerard dapardieu russian citizens of he upset against the french president hollande raising rich taxes by to 75%. david: businesses dealing with new tax hikes and business regulation. john gilbert ceo of famous dave's. john kraft, first edge solutions. they have a different perspective on see solutions. is the new tax deal going to change the way you do business in any way shape or form? >> david, i don't think it will change the way we do
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business business. it will give us our comfort our customers have a little more predictability in their lives and set down. fiscal cliff created hesitancy for customers to spend over last couple months. i'm happy to say that part is over. seems we have a situation where we have half the battle figured out. david: tax credits, are you using them t all? the president always touts his tax credits as a boon to small businesses. has it helped you at all and are you using them any in way? >> absolutely. we were concerned the tax credits would beed out as part of the fiscal cliff solution but in they're still part of how we do business. the r&d tax credit we used and will continue to use going forward. david: robert, a little different business. most people know famous daves. they might not know first
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edge solution. what do you do i quickly. >> direct marketing company that develops software to manage mobile and e-mail. david: how many employees do you have? >> we have 100 employees and three plants, atlanta, phoenix and wisconsin. david: you fall right into the small business category concerned about obamacare, don't you? because you have just enough employees you have to begin to provide services maybe you haven't been providing in the past? >> absolutely, david. i think the fine line with us is we also develop software solutions for the health care and insurance industries of the so as a result of obamacare we're actually able to help some of those insurance and health care providers develop better communications strategies to reduce their costs and increase better efficiencies in reaching their consumers. david: as an employer robert how will it affect your relationship with your emmloyees and your costs? >> we've been in conversations about that because absolutely it is a
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fear. no question we don't think there's a free ride for anybody. there is no such thing as free health care. it might sound good but when you put 40 million people that are uninsured on the program, somebody will have it pay for it and ultimately it will fall back on all our shoulders which means downward pressure across the board at a macro level. david: john, we've been talking to restaurateurs hit by obamacare because they're hit by insurance coasts they haven't paid before. some people are thinking of switching their employees from full time to part time as a result of this. have you thought about that. >> david, we're looking at a wide range of options as we try to understand the true impacts of obamacare. our feeling right now we think we can walk the fine line between creating shareholder value and doing right by our employees as it relates to health care. we already have health care programs that we offer to all employees. some of those health care programs vary in
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affordability and also in terms of benefits you about we think like many restaurant companies we can walk a fine line as we understand more and more what the true impact of obamacare is over the next two to three years. david: but it doesn't sound like you've taken off the table the idea of moving some full-timers to part time? >> no. we haven't and somebody who waited tables years ago myself, that part of our employee base does have flexibility in terms of how many hours they work and where they work. so we want to be able to be competitive in the marketplace and offer the best, the best array of benefits that still live up to the spirit of the law. david: now, robert, for all of the tensions that america has been put through over the past several months over this whole fiscal cliff deal, you're not bothered by divided government that much. you think that one side really does restrain the other and for all of the crazy hysteria that we have to go through, maybe divided government is not a bad thing, right? >> well, i think that is a pretty darn bold statement.
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i don't know if i would live by those words but i do think some sense of balance when these guys arguing sometimes creates a level of certainty and essentially like john was talking about earlier the fact that we finally have a bill that was passed that at least gives us some concern going forward so we know how to plan and strategize for 2013 and 2014 and beyond but we're certainly not out of the spend issue. david: no. >> that is a much larger issue than the tax issue. i mean it is like, we're using a garden hose to fill up a bucket with a hole in the bottom and now we're using a fire hose to fill it. your revenue doesn't touch where your expenses are. david: it hasn't been touched at all. that is all a tax deal. we will probably have to deal with the spending issue when that debt deal comes up. thank you very much for your perspectives from the front line of business. john gilbert and and david.
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liz, over to you. liz: car sales continue to rise at ford and general motors but how do they hold up against their foreign competitors? you have to hear this one after the break. here from one of competitors that finished a record year. more of you are buying this kind of car, audi the president of audi america is joining us. find out how they are spending big bucks to drive the business forward. ♪ . this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger,
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you need an ally. ally bank. your money needs an ally. liz: here is your fox business brief. it was a sea of red down on wall street after the fed signaled that its bond buying program may end this year. at the closing bell the dow jones finished lower by 21 points to 13,391. natural catastrophes
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including hurricane sandy and the corn belt's drought cost the u.s. more than $160 billion in insured losses last year. this according to german reinsurer munich re. the company says the u.s. insurance industry record an additional $65 billion in losses worldwide. and starbucks continues to expand outside the united states. you thought it was everywhere? guess what, the coffee chain giant setting up its first cafe in vietnam early next month. starbucks will work with a hong kong parter to open up the storied in whochy mean city, saying asia is cost driver
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david: consumers seem to be putting the pedal to metal as auto sales accelerate in december. liz: 12 was the best year for automakers since 2007. jeff flock has covered the
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auto industry. looking at the details, nice, nice month again. >> good month, good year. some better than others but pretty much good for everybody. at the end i'm going to have a trivia question and an answer for you. what do you think is the best-selling car of the year worldwide? think about it. i will have the answer in a moment. first let's take a look at the numbers, who did well in december? well, pretty much everybody except for one. starting with the american automakers, ford, gm, both up. toyota was up. chrysler up, double digits again which was a surprise. the overseas automakers did better in december, largely. vw up 35%. honda was up double digits. so was hyundai. only one down on december of anyone was nissan. now take a look at year-end because this was the last month of the year so who did well year-end? again you look at american automakers but they did much better last year. the japanese obviously recovered better. toyota up 27% on the year.
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chrysler up 21%. they had a great year all the way around. honda was up. hyundai is up. everyone was up. it was a good year. i tell you we were on the conference calls today. mark reuss at gm saying he thinks next year will be even better. maybe 15 1/2 million selling rate. toyota says they will sell 100,000 more cars than they did last year. look at the stocks. gm and ford both largely up this year or today on trading and toyota not so much. what do you think was the best-selling car in the world? liz: i'm going to say, can i have two choices? >> no. david: just one. >> toyota corolla? david: hold on. don't tell us. don't tell us. >> good guess. go ahead. david: my guess, chrysler-jeep cherokee. >> interesting guess. here is the reason this one is it. the ford focus. liz: whoa. david: we missed it!. >> you know why? because it is one ford.
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they sell it all over the world, same car. everybody else does a separate nameplate. liz: alan mulally thing. he put everybody on the same train, power train and said make the european ford focus because it is kind of cool the one for everyone. david: amazing car selling in europe. jeff, thank you very much. good stuff. thanks for the quiz. liz: german automaker audi, did you hear about them? they posted record breaking u.s. auto sales in december. sales rose 17.3% year-over-year. how will they keep this momentum going into 2013? david: joining us in a fox business exclusive, audi america president and good friend of scott business. scott, great to see you. u.s. sales just going gangbusters. congratulations on that. i have to put it in context because it is a big world. audi is part of the whole world economy. does the success of your group, audi america, does that balance out the losses from what is going on in
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europe? >> you know, audi as you know is strong across the world and we will have a record year grownly. we'll do over 1.4 million units around the globe and we have actually held our own in europe. we're significantly up in china. but of course being up 18% year-to-date in america is helping the cause. good news all around. david: let me be specific, scott. i love you but have to hold your feet to the fire. audi vehicle sales in germany and europe shrank 4.1%. there was shrinkage in your rob will the boom times in america balance that out? >> absolutely it will. we are up 18% year-to-date. we'll pull our fair share for audi across the globe obviously. liz: how have you got americans to be so attracted to audi vehicles? what is it? >> i think it is a simple formula. we launched great products. we have great technologies. of course you've sign the recent announcement from audit. we're investing $17 billion
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between now and through 2016. this is not a business where you can cut corners. this is a business you need to invest. that is exactly what audi does. that allows us to have fresh products, fresh technology and consumers are in love with them. david: on the other hand, your parent company, i don't want to bewarer of bad news here, but i'm just stating facts. your parent company, volkswagen is basing for flat earnings because they invested so heavily high-tech for smaller cars particularly in europe. it doesn't always pan out, does it, high spending? what are you spending money on for out did i? overall the spending absolutely does pay out. this is a expanding business and you have to latest and greatest stuff particularly the luxury investments. you may have flatness but overlong term it absolutely does pay out. if you're looking at audi specifically we're looking at new production facilities. we're increasings production in hungary. we're increasing production
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in mexico. we're looking at plug in hybrids and more diesel technology and of course all new products. we have entirely all new a-3 sedan and q-3 suv that will hit the u.s. market in 2014. these are all the investments we're making in the u.s.. liz: how do you find the demand for plug-in hybrids in u.s. the audi axed the electric vehicle concept from production. but you guys are pretty committed to having renewable gas -- there are other things you want to do, but do you find the demand for the plugs-in hybrid is something american consumers can wrap their minds around a little more comfortably? >> we have to be clear about this thing. i think you have to look at consumer acceptability and you have to look at infrastructure and if we look at the near term what audi has done we invests heavily in our current technologies. we think there is a lot of work that can be done with the combustion engine. the second phase is diesel which we're launching four new diesel engines this year. as you start to move beyond
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diesel we think there is room for plug-in hybrid. now i think this is going to be obviously from a point of view not gigantic market share off this thing but it is clearly a technology we believe in. david: scott, we're looking at some of these wonderful commercials. super bowl is coming up. we'll see more of them. how much do your a ads and marketing play into your success? >> it plays a lot into our success. what we've done, turned ourselves into marketing and become a challenger brand and very aggressive brand. most importantly we gotten into the conversation in america. historically audi was unknown brand if you will and now we're front and center. the super bowl led us there and we'll be back. liz: i was going to ask you, in a different concept, no the vampire thing or something different? >> we have a whole different concept. unfortunately they don't let me talk about the things. we have a great concept we're excited to share in couple weeks. liz: jeff, thank you. we like to see businesses doing well. david: scott keough, good to see you. thank you very much.
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well, brace yourself, the new year isn't just bringing higher taxes. the obama administration hag a slew of regulations also on its agenda. find out what they are next. and the hit that you could be taking. ♪ .
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liz: so many people out there were focused on the fiscal cliff the obama administration quietly released its long overdue regulatory agenda on december 21st, which by the way did miss the october deadline. >> it was quite a book. regulatory watchdogs saying there are expense sieve and onerous regulations for
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almost every industry on the agenda. fox news's shannon bream joining with us that story. hi, shannon. >> hello. the by law the administration is supposed to issue a report about regulations in the pipeline that will have significant economic impact. it is supposed to happen in april and october. those deadlines were never met in 2012. instead we got the administration's regulatory agenda on the friday afternoon before christmas. on federal register where regulations are housed, 77,000 pages. 3700 proposed new rules and regulations. estimated cost of implementing the administration's new regulatory agenda is more than $123 billion and will likely require companies to spend 13.6 million man-hours processing all the necessary paperwork. >> they control cost of products that you, that you buy. they control the, your living conditions, your work conditions. they limited kinds of
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activities that you can do. they limit things you can do with your own property. they subject people to all kinds of violations that they had no idea they were doing. that of course can ultimately impact somebody's liberty. >> because some of these regulation haves criminal penalties and you could wind up in jail. many of the proposes regulations we'll see now in 2013 do stem from the new health care law. while regulations often have a very legitimate goal it is the execution of them that gets a little tricky. >> so a lot of times the regulators will say, our regulation protects consumer safety or protects public health but what they don't tell you is that there's a massive hidden cost to a lot of these regulations in the form of job losses, increased cost of consumer goods. a lot of times those real-life consequences get lost in the shuffle. >> by the way these are the regulations we know about but just so you know, when it comes to the regulations from the new health care law and dodd-frank administration is already 50% behind on the deadlines it missed on both of those
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major laws when it comes to regulations that will tell us how to term them. guys, back to you. liz: thank you, so much, shannon bream. david: up next a rubber ducky that probably won't fit in your tub. it is five stories high. we'll tell you where it is when we go "off the desk.". ♪ . [ male announcer ] where do you turn for legal matters?
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